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Ning Gaoning, known as the "general practitioner of state-owned enterprise reform", finally ended his career as a professional manager. On August 26, the official website of China Sinochem released the news that Ning Gaoning was dismissed from the position of chairman of the board of directors and secretary of the party group of Ning Gaoning China Sinochem Holding Co., Ltd., which also means that Ning Gaoning, the "strongest state-owned enterprise leader" who has been in the industry for 35 years and has helmed four Fortune 500 companies, has officially ushered in retirement.
According to the relevant regulations of the Central Organization Department and the State-owned Assets Supervision and Administration Commission, the retirement age of the top leaders of large central enterprises is 60 years old, the upper limit is 63 years old, and only a few cases can be postponed to 65 years old for special reasons, and now Ning Gaoning is 64 years old.
In the evening, China Jinmao, a city operation platform enterprise under Sinochem, issued a long article "He was in Jinmao for six years in spring and autumn" to thank you, the article recorded Ning Gaoning's tenure as chairman of China Jinmao, the article introduced: In the past 6 years, Ning Gaoning has led China Jinmao to continuously break through, the company's total assets have increased by 2.2 times to 412 billion yuan by the end of 2021, the annual operating income has increased by 3.9 times to 900 billion yuan, and the total annual profit has exceeded 10 billion yuan for 4 consecutive years.
China Jinmao President Li Congrui forwarded the article. Subsequently, he also forwarded Zhenghedao's article "China Morgan, Retired today", which detailed Ning Gaoning's brilliant achievements and praised him as a "world-class entrepreneur", and "the red genes flowing through him gave him a sense of home and country that other excellent entrepreneurs do not have".
Not surprisingly, the news of Ning Gaoning's retirement caused quite a stir in the industry, and at the same time, his prose poem "The Beauty of Old Age" for farewell was also forwarded and brushed the screen, in which he described old age as a beautiful thing, and wrote: "Old age will regenerate, the morning sun is different, your life also begins a new chapter, the chapter of freedom... If you're old, Congratulations! ”。
Although Ning Gaoning began to "enjoy" his "old beauty", his legendary experience is still circulating in the industry.
In 1983, Ning Gaoning graduated from the Department of Economics of Shandong University, and since then became one of the first people in China to study for an MBA in the United States, and obtained a master's degree in business administration from the University of Pittsburgh.
In 1987, Ning Gaoning entered China Resources (Group) Co., Ltd. During this period, he grew from an ordinary employee to the head of the enterprise, and after taking charge of the China Resources Group, Ning Gaoning launched a series of mergers and acquisitions to build China Resources from a foreign trade company into a diversified giant industrial enterprise spanning real estate, beer, retail, power and other industries. Ning Gaoning is also known as "Red Morgan" by the industry.
At the end of 2004, Ning Gaoning "parachuted" to COFCO as chairman and entered a new industry that was not familiar. When he first arrived, Ning Gaoning was under tremendous pressure. "It's like suddenly replacing a player in a fierce soccer match, this new player doesn't know his teammates and the team's playing style, and he wants to integrate into the team in the game, which can easily cause panic," Ning Gaoning once described his mood at that time in COFCO's internal publication "Enterprise Zhongliang".
However, he soon proved his cross-industry management ability and capital operation ability with his achievements. Ning Gaoning led more than 50 mergers and acquisitions during his time at COFCO, including Companies such as Tunhe in Xinjiang, Zhongtu Livestock, China Resources Alcohol, Shenbaoheng and Wugu Dojo. According to the information on the official website, during Ning Gaoning's tenure as chairman, the assets of COFCO Group reached about 462.4 billion yuan from 59.8 billion yuan, ranking among the top three major grain enterprises in the world.
In addition to China Resources and COFCO, the third and fourth stations of Ning Gaoning are Sinochem Group and ChemChina, and promote the merger of ChemChina and Sinochem Group, and the assets of Sinochem after the reorganization exceeded trillion yuan. This is unprecedented in The Chinese corporate world.
In the past 35 years, Ning Gaoning has helmed four global top 500 companies and promoted the leapfrog development of these enterprises, which is unprecedented in the world. These enterprises have a large scale, diversified business, and huge management difficulties, so Ning Gaoning has also precipitated a lot of thinking and creation in the management process, and contributed to the business community management methods such as the ten-step method of strategic thinking, the 6S management system, and the five-step combination theory, which are still widely used by China Resources, COFCO, Sinochem and other enterprises to this day.
The following is a compilation of some of Ning Gaoning's thoughts and inductions on enterprise management methods when he was serving in several large state-owned enterprises for the benefit of readers.
First, the enterprise strategy
Strategy is not isolated, it is a systemic problem. The establishment of strategic objectives is the first outcome of the mature development of an organization.
The strategy is fundamentally growth and growth mode, what kind of way and what kind of path we use to achieve the growth of the enterprise. The starting point of the strategy is the market. Drucker proposed that strategy is the process of achieving maximum returns with the least amount of resources through the most effective management.
For diversified groups, the group headquarters guides each business unit, and the ten-step method of strategic thinking can be used to form a business unit competition strategy.
Ten-step approach to strategic thinking:
1. Describe the vision and corporate mission;
2. Market environment and competition structure analysis;
3. Competitor analysis and establishment of competitor information system;
4. Customer segmentation and value chain analysis;
5. Ability analysis and the timing of the target;
6. Positioning, strategic planning and strategic management;
7. Other strategies and resource allocation that coincide with strategic positioning;
8. Management efficiency and implementation of management tools;
9. Build a cost-leading or differentiated competitive advantage;
10. Continuous reflection and adjustment in the promotion of strategic objectives.
When major changes occur in the external environment, enterprise managers have enough courage and at the appropriate time to lead enterprises to make major strategic adjustments and changes, break free from the old development model, and embark on a new development path.
Second, the relationship between strategy implementation and people
People are the biggest link between strategy and execution. People are the most core element in the enterprise, people to implement, people to organize.
In enterprise management, there is a power system and a force system. Whether you want to do it or not, is whether there is a power system; And whether it can be done well is whether there is a force system. There are different responsibilities between high-level management and middle-level management, the more strategic and macro things, the more high-level things, this is also a system, constantly circulating, constantly updating itself.
In the enterprise, when it comes to strategy, when it comes to any business decision, it is necessary to assume the existence of people, to assume that people are capable. In real management, people are all. For man is the prerequisite for all other management actions. You have the best team, the best system, the best management method, the best corporate culture, and then other ways to do things.
But our problem is that often this assumption does not exist. We've decided what we should do, but when we get back, we know that there's not enough from ability to motivation to professionalism, and that's a problem. Therefore, people are the starting point and the end point of management. "People-oriented", "people on top", "humanistic", see things must think of people, this is actually the basic requirement for management.
Third, select people and team driven
1. Leadership
Leadership is the ability to lead an organization to achieve its goals. There are many ways to lead, which can be design, planning, vision passion, or participation. The management mode of enterprise organizations is different from government organizations, school organizations, hospital organizations, and charitable organizations, and it must have a strong sense of purpose. Goals are ideals, visions, strategies, etc.
When making a leadership model, especially when cultivating, examining, and evaluating a manager, the six-dimensional model can be used as a basic evaluation method.
Whether a leader has a very strong motivation (attitude) quality, whether he is a passionate person himself, whether he is dedicated, honest, self-disciplined, inclusive, and just; At the same time, whether there is professionalism, vision, determination, innovation and other abilities and qualities, these two aspects should be combined to evaluate.
Another is the results model, assuming that a company is running at the same starting point, let five managers to operate, what will the company look like in five years?
In the first case, the company is quite stable, but there is no development; The second case is a tactical improvement type, minor repairs and minor changes; The third type of expansion without strategic guidance; The fourth type of strategy, not to mention whether it is done well or not, but he has a strategy; The fifth sustainable strategic type is visionary, strategic, teamed, organized and sustainable development. Such a manager is a person with leadership qualities who is suitable for leading the team to develop.
Finally, we make a reflection and comparison, as long as everyone is frank, there will be progress, and this is very difficult, because human nature is to report good news and not worry, but put into a team, if you want to make the team strong, everyone must have good communication, honesty, enthusiasm and innovation.
2. Several levels of managers
There are five types of business managers.
First, the job-abiding type. The professional manager likes to manage large companies, as if he is born to be an official. After coming, I can basically maintain it. He has responsibilities, nine to five, good to people, not corrupt and not corrupt, everything will be opened, speeches according to the script, all very good, no problem, keep the scale. But to hold on is to fall behind, because others have progressed, the market has progressed.
Second, the efficiency improvement type. In the internal management reform and improvement, improve efficiency, such as cost reduction, production increase, sales expenses, etc. He manages, this is efficiency-type, this is a good manager.
Third, business expansion. Managers must have the desire to develop, must have market share, must compete. He would build new factories. He said, "You see who the competitors are, who are, and they have increased production, they have invested again, and people have built new factories, we must build them, and if we don't build them, we will fall behind." "Is that right? That's right. This is an extended manager. While it hasn't really revolutionized the industry, it's also evolving. If he is lucky, the industry he is in is a very fast-growing industry and can achieve some success, but it is not all such a result, and he does not know which day the industry will change.
Fourth, strategic transformation and development. This kind of manager will study strategic transformation, especially innovative technology, industry transformation, and constantly have new ideas. This kind of manager will not do repeated construction, will not fight a price war, there will be new innovative things out, which is very rare manager, rare.
Fifth, sustainable development organizations are reshaped. This kind of manager will make the organization a learning, innovative, sustainable organization, with or without him. The organization itself is very well-established from the development of spiritual ideas to the development of business expertise, which is rare for managers. These are the five levels of managers, and the higher the level of managers, the more they will have a great role in promoting the progress of the enterprise.
3. Team building
Team building is to turn the ability of team members into a comprehensive and comprehensive collaboration ability.
The team generally does not exclude very hard-working, very united, very loyal people, although this person may be less capable and cause some problems. This is the characteristic of our state-owned enterprises. Our organization excludes people who disagree in their thinking, morals, or beliefs. It should be said that the way of thinking is more important than ability, moral character is also very important, and morality is the first, which is a means of team building itself.
We may not be able to change everyone's personality, but when we form a team together, the team's personality can be shaped. Because the team is a product, a product made up of individuals, can be shaped. We must establish sufficient mission, vision, goal, strategy, layout capabilities in the team, organizational structure, operating model, business model, and resource integration capabilities.
I was exposed to the action learning method at General Electric in the United States. The action learning method is based on the idea that wisdom is in the team. We must arouse everyone's wisdom and gather them. For the company's business, everyone participates, understands, and unifies their thinking, the method path is also unified, and the organization will be firm and confident.
4. The power system of enterprise innovation and transformation
The "power system" is to meet the "internal needs" of employees to the greatest extent with scientific and reasonable "external stimuli" and to stimulate the "motivation" of employees to the greatest extent, so as to generate the "motivation" of work and promote the innovation and development of enterprises.
According to the difference in meeting the inherent needs and the level of innovation ability, the power system of enterprise innovation can be summarized into four types with progressive relationships: the original power system, the three-dimensional power system, the occupational power system and the belief power system.
To create a good enterprise innovation and transformation power system, it is necessary for the above four "systems" to work together. People's internal needs are diverse, and the structure of most people's needs is very complex, and at every moment there will be many needs that are influencing at the same time, and it will not be a single need that dominates people's actions. Therefore, any of the above single systems are not enough to support sinochem's comprehensive innovation and transformation.
Primitive power system: Mainly to meet people's most basic survival needs, according to the Chinese is "to support the family". Enterprises mainly carry out simple and direct material incentives under strict discipline, such as piece-rate remuneration. Under this power system, employees are more like "parts" on the assembly line, and the original power system is the weakest from the perspective of driving innovation.
Three-dimensional power system: the introduction of goals, performance, evaluation, rewards and other management methods, focusing on the comprehensive consideration of long-term benefits and short-term benefits, more systematic and professional. This system has a certain degree of benefit to the improvement of employees' work enthusiasm and work performance, and even to the enhancement of the competitiveness of the enterprise industry, but the role of promoting innovation is not very obvious. Because it is still the main goal to meet the economic needs of employees, with material incentives as the main means, employees will still pay more attention to the material returns that can be expected in the short and medium term, and are rarely willing to invest time, energy and resources for long-term and risky enterprise innovation work.
Occupational dynamic system: From the perspective of promoting innovation ability, the occupational dynamic system is relatively strong. The system is primarily designed to meet people's need for self-respect and recognition as a member of a business. Enterprise management is mainly based on spiritual incentives such as honor incentives, trust incentives, and authorization incentives. Professionalism is not about not talking about material returns, but on this basis there is a higher pursuit. For example, the challenge of the self, the exploration of the self, the pursuit of the self-professional. In such an organization, the pursuit of innovation has more possibilities, and will be more inclusive and encouraged. However, due to the stability, normativity and self-consciousness that comes with this professionalism, the role of stimulating and promoting innovation will be limited to some extent.
Belief In the power system: From the perspective of the ability to drive innovation, it is relatively the strongest of the four power systems. The system is mainly to meet people's needs for self-development and realization. From the perspective of enterprise management, it is mainly to form a corresponding corporate culture to cultivate and carry forward. Faith usually manifests itself as a strong belief, or even a stubborn trust in something. In the enterprise, it can also be understood as a feeling, pattern, and values, and is willing to use a longer period of investment to achieve a greater pursuit, so that their life experience is more colorful and meaningful.
4. Operation management
How to manage the enterprise in the process of enterprise operation, you can see the relationship between people and things.
1, 6S management system
First, the strategic unit management system (BU, business unit). What is a "strategic unit"? First of all, it is strategic in its own industry, and secondly, it has an understanding and drive of strategy.
Second, a comprehensive budget system (analysis of business, market). In the past, the budget was compiled by the Finance Department, but now it is not, some enterprises even only do work plans without budgeting, what to do next year, what products to sell, and how many markets to occupy, no longer calculate it, because this number is basically made. A comprehensive budget system is about really getting the business done.
Third, the management reporting system (current period, main business, real). In the past, there were financial statements, but they could not be managed with financial statements, because financial statements made it difficult to evaluate all the things that were not cash and accounting in history. The management reporting system excludes history, accounting principles, etc., and is responsible for the competitive evaluation of the main business in the current period. The responsibilities of the team are clear and easy to evaluate.
Fourth, the audit system (internal operation compliance construction). The audit system is internal audit, mainly based on compliance audit. For example, I give others an account, a loan, the goods sold the money did not get back, this is the accounting can not be examined, but from the perspective of the enterprise need to consider how the business should be lent, the debt ratio can not be much higher.
Fifth, the business evaluation system (benchmark, market, history). In the past, operations were evaluated on a budget. You said you're going to make 100 million this year, you're going to make 120 million by the end of the year, praise you, make 80 million, criticize it, so that the budget becomes a bargaining system. The so-called benchmark, competitor, market, history to evaluate, budget evaluation only accounts for 10% to 15%, the remaining 85% according to the market, history, benchmark evaluation.
Sixth, the management team and the manager evaluation system (team, innovation, potential). How would you rate a team manager? The one who makes money must be a good manager? Not necessarily, is it a bad manager who doesn't make money? Not necessarily. This has an evaluation of the stage of enterprise development, innovation and potential.
2. Five-step combinatoric theory
Five-step combinatoric theory is the path and logic of company management, that is: what is the relationship between cost and strategy? What is the relationship between people and strategy? What is the relationship between team and cost? What is the relationship between technology and teamwork?
Through five-step combinatoric theory, it will be found that the original enterprise is so circular, with logical relationships and before and after paths. Of course, this cycle is dynamic, and there are many small loops in the big loop.
The first step is to choose a manager. The ultimate decision maker for all activities in the enterprise is the head of the enterprise. The biggest decision of the head of the enterprise is to elect a manager through the board of directors based on the value orientation and preferences of the shareholders. The selection of managers basically determines the fate of the enterprise by 80%, and everything behind it starts here.
The second step is to form a team. The selected manager must have a relatively strong ability to form a team, but also give him certain rights, otherwise there is no room for play, there will be excuses for doing things, and the motivation will be weakened.
The third step is to develop a strategy. Why isn't the strategy in place? Because the team is initial, only a good team can have a good strategy, the strategy is not falling from the sky, not set by someone, it must be an organic, coordinated, and energetic team to develop a strategy.
The fourth step is market competitiveness. 90% of the MBA program is about this, including product, technology, cost, price, market, brand, talent, capital, operation, risk and so on.
The fifth step is value creation. Enterprises are multi-objective, encompassing the goals brought about by the enterprise itself, society, and the attributes of state-owned enterprises under the leadership of the Party. In addition, shareholders, employees, customers, partners, the public, capital markets... These goals need to be balanced. The evaluation of the enterprise is not a single, it is necessary to evaluate from the political, economic, social, customer, humanistic and other aspects, from which the overall view of the enterprise is a good enterprise or a bad enterprise. So it goes back to the first step, the evaluation of the manager or the team – is it done well? Should it continue? Once the substitution is made, the cycle begins again.
Every step in this cycle has to be good, because it is a multiplier effect. The manager gets 1 out of 1 if he does it right, and if he doesn't do well, he gets 0.5 out of 1, and everything behind him is half wrong. If you get to the team and then get 0.5 points wrong, the development strategy will become 0.00 points. Therefore, in the process of enterprise circulation, it is necessary to do a good job in order to coordinate the strategy and organization.